2014-02-11T14:41:01-06:00 2013-06-30 135565207 KPMG LLP 210 Park Avenue Suite 2850 Oklahoma City OK 73102 990 2012-07-01 850129165 Albuquerque Academy ALBU 5058283200 6400 Wyoming Blvd NE Albuquerque NM 871093899 Gary L Gordon 5058283200 2014-02-11 1 P00031690 4055523857 2014-02-11 2012 2015-11-30 17:44:51Z Andrew Watson 6400 Wyoming Blvd NE Albuquerque NM 871093899 54423081 0 X www.aa.edu X 1955 NM The Academy is a non-denominational, coeducational, independent day school. 20 20 985 485 -266 -1901 2577180 11504122 25158795 26318992 6034094 5465537 -31208614 -4900 2561455 43283751 5142582 5015466 0 0 23303174 23356249 82973 0 1368485 10442256 11540186 38970985 39911901 -36409530 3371850 132852980 140365392 50746236 51102582 82106744 89262810 X See Schedule O, General Statement 2 0 0 26155728 4937036 21812681 See Schedule O 1838595 7360 2003066 See Schedule O 1266729 71070 1312730 See Schedule O 1380637 0 1190515 The Media Literacy Project ("MLP")MLP, founded in 1993, is nationally recognized as a leader in media literacy education. Its mission is to cultivate critical thinking and activism in media culture to build healthy and just communities. MLP delivers dynamic multimedia presentations, at conferences, workshops and classrooms across the country. The media literacy curricula action guides are used in countless classrooms and communities in all fifty states and abroad. MLP's Catalyst Institute and other training programs have empowered thousands of people to advocate for a media literate society. Community BuildersCommunity outreach is an important aspect of the Academy's mission. The school is deeply committed to making a positive impact on the greater Albuquerque community, the state of New Mexico and beyond. Outreach initiatives are abundant and community service is part of the curriculum at all grade levels. Each year students undertake projects at numerous non-profit organizations in the community. Community Builders is a tuition free progarm that gives students from the Academy and other area schools an opportunity to learn the "nuts and bolts" of community philanthropy and non-profit organizations. The program includes a mix of site visits and meetings with community leaders to discuss a variety of topics, including types of non-profits, legal and ethical issues in the non-profit sector, grant writing for non-profits, non-profit governing boards and community leadership. At the end of the program students come together as a mock foundation to make decisions about how to support some of the non-profits they studied, both financially and through volunteer work. The program is permanently endowed so that funds totaling $10,000 can be allocated among studied non-profits.Charger Aquatics ("CAQ")CAQ is a comprehensive, year-round aquatics program that provides swimmers in the greater Albuquerque area with opportunities to learn, participate, and compete in the school's state-of-the-art aquatics facility located in the nationally acclaimed Barney Natatorium and offered as part of the school's ongoing commitment to provide service and outreach to the community at large. CAQ offers membership in USA-sanctioned clubs, including USA Swimming and US Masters Swimming, along with an extensive selection of non-member aquatics classes such as Aqua Fitness and toddler and preschool swim lessons. Total enrollment for all progarms was 286 for the year ending June 30, 2013.Community AcademyCommunity Academy supports the Academy's commitment to community outreach and life-long learning. Community Academy offers a continuing evening lecture series, free of charge to the entire community, presented by Academy faculty, alumni, and by community leaders with expertise in their fields. 1380637 1190515 30641689 1 1 0 0 0 0 0 1 0 1 1 1 0 0 1 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 1 0 1 0 1 0 0 0 0 1 1 1 0 0 1 X 102 0 1 985 1 1 1 0 0 0 0 1 1 0 0 0 0 X 20 20 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 NM X Brent Wheelis 5058283231 6400 Wyoming Blvd NE Albuquerque NM 871093899 Walter Stern III 5.00 X 0 0 0 Sarah Kotchian 2.00 X 0 0 0 Adam Honegger 2.00 X 0 0 0 Pam Garrett 2.00 X 0 0 0 Hope Mead Wynn 2.00 X 0 0 0 Thomas Baca 2.00 X 0 0 0 Jennifer Davis Hall 2.00 X 0 0 0 Heidi Heard 2.00 X 0 0 0 Andrew Hsi 2.00 X 0 0 0 Chris Jillson 2.00 X 0 0 0 Karen Knauf 2.00 X 0 0 0 Ian McKinnon 2.00 X 0 0 0 Ronald Moya 2.00 X 0 0 0 JoLynn Muraida 2.00 X 0 0 0 Sandra Ricci 2.00 X 0 0 0 Valerie Romero-Leggot 2.00 X 0 0 0 Tracy Small 2.00 X 0 0 0 Thomas Smidt 2.00 X 0 0 0 Randall Talbot 2.00 X 0 0 0 Judy Beckes-Talcott 2.00 X 0 0 0 Andrew Watson 40.00 X 349753 0 36443 Gary Gordon 40.00 X 230276 0 41691 Don Smith 40.00 X 146612 0 23095 Nancy Parker 40.00 X 113677 0 15709 Jeffrey Morgan 40.00 X 109778 0 19537 Pamela Scanlon 40.00 X 109158 0 22805 Stephanie Levy-Lipkowitz 40.00 X 106621 0 59407 1165875 0 218687 7 0 1 0 National Roofing Company 3408 Columbia NE Albuquerque NM 87107 Roofing services 377784 Energy Control Inc 2600 American Road SE Rio Rancho NM 87124 Electrical services 285974 RoofCARE 609 Broadway NE Albuquerque NM 87102 Roofing services 255212 Williamson Restoration Inc 2323A Aztec NE Albuquerque NM 87107 Restoration/cleaning services 181810 Computer Solutions Group 2740 Wyoming NE 4 Albuquerque NM 87111 Technology services 181198 12 43115 55637 11405370 3919565 11504122 Tuition and fees 900099 21812681 21812681 0 0 Summer school/outreach 900099 2003066 2003066 0 0 Food service 900099 1312730 1312730 0 0 Bookstore 900099 592203 592203 0 0 Charger aquatics 900099 347011 347011 0 0 251301 251301 26318992 2163649 -266 2163915 14417988 11116100 3301888 3301888 3301888 18330 43115 23230 -4900 -4900 43283751 26318992 -266 5460903 5015466 5015466 705474 268982 374419 62073 75399 75399 16454580 14460406 1393277 600897 1312429 1142086 119009 51334 3299866 2820911 333610 145345 1508501 1270741 158860 78900 215938 215938 133141 133141 467462 467462 258723 249717 5754 3252 224371 179868 12094 32409 589197 465999 55205 67993 323535 288416 22287 12832 1113859 1064849 46782 2228 216446 159533 19756 37157 485169 212479 50196 222494 2014991 2014991 119916 119916 2263332 2263332 210061 175343 23687 11031 Summer school/CAQ/books 1504576 1504576 Instructional/student a 1205785 1205785 193684 81133 72011 40540 39911901 30641689 7901727 1368485 2808152 275503 3373574 546251 943994 7174655 497380 275140 0 0 0 0 2000 0 266626 241804 645094 459339 81906475 47625629 32888972 34280846 58303421 64537670 32207575 31650954 0 0 0 0 916192 923230 132852980 140365392 2383408 2108851 0 0 1360995 1501866 37227532 37184079 0 0 0 0 4000000 4000000 5466140 5966140 308161 341646 50746236 51102582 X 43341943 41328922 20922491 30028569 17842310 17905319 82106744 89262810 132852980 140365392 3371850 3784216 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 177494 X X 0 90881192 3167111 8893220 0 6200000 2688514 94053009 126002365 1087464 -26611969 0 8312731 1283937 90881192 131182768 229222 6215947 0 10799680 825892 126002365 181487718 1258417 -35400594 0 12137729 4025044 131182768 244608876 516520 -55419476 0 13829914 -5611712 181487718 0.59900 0.21100 0.19000 1 0 397024 397024 63159301 34598473 28560828 11783097 9914915 1868182 6567053 3112241 3454812 34280846 Partnership investments 15140731 F Sandoval county real estate 12525000 F Assets held in trust by others 3924486 F Other investments 31936 F Dona ana county real estate 28801 F 31650954 Annuity and other split interest obligations 341646 341646 X 46734922 3784216 3784216 42950706 356275 -23230 333045 43283751 39578856 0 39578856 356275 -23230 333045 39911901 Part III, Line 4: The Academy maintains a small art collection consisting of items donated to the school over approximately the past 25 years. Included in this collection is a series of photogravuers, a flemish tapestry, and several oil paintings (including portraits of Mr. & Mrs. Simms, major donors to the Academy.) The art collection is currently displayed in various venues across campus for the edification of our students as well as for the enjoyment of vistors of our campus. It is anticipated that items within the collection will grow in value over time and may eventually be sold to support various programs and initiatives benefiting the Academy's students. Description of Intended Use of Endowment Funds: Part V, Line 4: The Academy's endowment, consisting of permanent funds and a quasi-endowment fund, provides vital financial support for the overall mission of the Academy. The endowment sustains opportunities of remarkable scope, including experiential and outdoor education, deep academic excellence, global exchanges and languages and sustainability initiatives closely attuned to a changing world. These programs make the student experience here one of the broadest in independent education. The endowment also supports our admission process and generous financial aid program. These programs are committed to providing access to the Academy for students of talent and character from throughout the city, region, and (at times) country as they seek an enriched and meaningful educational experience. The Academy's endowment supports our outreach programs. Our Community Academy lectures, Charger Aquatics progam, Summer Session, and artistic, athletic, and volunteer events on campus all exemplify our community outreach and the Academy's belief in life-long learning. Description of Uncertain Tax Positions Under FIN 48: Part X, Line 2: The Academy's income tax footnote contains a description of the requirements of ASC 740 - Income Taxes. The footnote in the audited special-purpose financial statements for the year ended June 30, 2013 contains the following: The Academy is a not-for-profit organization and qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code ("IRC"). The Academy is exempt from federal income taxes under Section 501(c)(3) of the IRC, except on net income derived from unrelated business activities. For the years ended June 30, 2013 and 2012, the Academy has determined that no income taxes are due for its activities. Accordingly, no provision for income taxes has been recorded in the accompanying special-purpose financial statements. Management annually reviews its tax positions and has determined that there are no material uncertain tax positions that require recognition in the accompanying special-purpose financial statements. The Academy files informational tax returns. In the normal course of business, the Academy is subject to examination by federal, state, local, and foreign jurisdictions, where applicable. As of June 30, 2013 and 2012, the tax years that remain subject to examination by the major tax jurisdictions under the statute of limitations for the Academy are from the year ended June 30, 2011 and forward. The Academy would recognize accrued interest related to unrecognized tax benefits in interest expense and penalties in operating expenses. There was no such interest or penalties recorded for the years ended June 30, 2013 and 2012. Part XI, Line 4b - Other Adjustments: Skip Porter Memorial Golf Tournament fundraising expenses Part XII, Line 4b - Other Adjustments: Skip Porter Memorial Golf Tournament fundraising expenses 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 1 0 1 Explanation of Nondiscriminatory Policy Publication Schedule E, Part I, Line 3 The Academy publishes its non-discrimation statement in the following materials: 1. Admission brochures 2. Admission view book 3. Admission/financial aid forms 4. College profile guide 5. Summer session catalogue 6. New parent guidebook (available on-line) 7. Posted on the Academy's website on the employment page 8. Albuquerque Journal (annually) Explanation of Government Financial Assistance Schedule E, Part I, Line 6 The Academy receives funds from the federal government in the form of the National School Lunch Program. The Academy also participates in the state of New Mexico textbook program. Based upon its enrollment, the school receives credits that allow all students to use state textbooks. The Albuquerque Academy Educational Foundation ("Educational Foundation") is an entity whose principal purpose is to support New Mexico member schools of the Independent Schools Association of the Southwest. The Educational Foundation is operated, supervised, and controlled by the Academy. Effective July 1, 2009, the Educational Foundation suspended the awarding of grants until such time as economic conditions make it feasible to resume the awards. No grants were awarded during the fiscal year ended June 30, 2013. Golf Tournament 61445 43115 18330 1400 424 14440 3069 0 3897 61445 43115 18330 1400 424 14440 3069 3897 23230 -4900 1 Financial aid for Academy students 329 5015466 0 N/A No non-cash assistance provided by the Academy. Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Financial aid is awarded based solely upon demonstrated financial need. A family's need is assessed through a comprehensive screening process. The process requires that the family complete an application and provide the Academy with a full set of tax returns including all supporting schedules. To determine the appropriate financial aid award, the Academy utilizes a standard methodology provided by School and Student Services ("SSS") and which is used by Independent Schools nationwide. This methodology calculates a contribution for each individual family based upon the family's specific financial situation and discretionary income. Prior to making an award, each applicant's file and proposed award is carefully reviewed by a committee to ensure the decisions are based on consistent application of need based criteria. Financial aid is awarded annually based on the current school year. Applicants must reapply annually by submitting a new application and current tax documentation. In addition, to a committee review of each award, the Financial Aid Office of the Academy conducts a random audit of files annually as another measure to ensure that financial aid is being awarded appropriately and the proper supporting documentation was submitted as part of the application process. On a monthly basis, the Business Office of the Academy compares the financial aid subsidiary ledger postings to a list of aid awards provided by the Financial Aid Office to ensure there are no discrepancies between the two amounts. Any discrepancies are promptly researched and resolved. X X X X X 0 0 0 0 0 0 0 0 0 Andrew Watson 304753 0 45000 0 0 0 25000 0 11443 0 386196 0 0 0 Gary Gordon 190276 0 40000 0 0 0 11873 0 29818 0 271967 0 0 0 Don Smith 146612 0 0 0 0 0 15084 0 8011 0 169707 0 0 0 Stephanie Levy-Lipkowitz 106621 0 0 0 0 0 11214 0 48193 0 166028 0 0 0 Part I, Line 3 See Schedule O for discussion of establishing the compensation of the Academy's Head of School and Treasurer. A Village of Los Ranchos de Albuquerque 850236091 54561OAR8 2010-09-21 37303574 See Schedule K - Part V Supp. Info. 0 0 0 A 37303574 377205 413341 36513028 2010 1 0 0 1 A 0 0 0 0 0 0 0 A 0 1 0 1 0 0 0 0 0 A 1 Form 990 - Schedule K - Part I - Line A Purpose of Bond In September 2010, the Academy issued $36,000,000 of Series 2010 bonds for the purpose of refunding Series 1999 bonds and Series 2002 bonds, terminating a master agreement and swap transaction with Chase Manhattan Bank and acquiring and installing infrastructure improvements on the school campus. The Series 2010 bonds were issued at a premium of $1,303,574, resulting in total proceeds of $37,303,574. The Academy's Series 2010 bonds provided approximately $6,000,000 in proceeds to fund updates of fire alarm and smoke detection systems, replacement of electrical load and motor control centers in original campus buildings, replacement of buried hot water and chilled water loop lines, and replacement of certain rooftop HVAC units and renovation of classroom buildings, and fixtures, including classroom technology upgrades. These projects are expected to result in substantial operating savings over the next several years. As of June 30, 2013, the Academy had $377,205 in proceeds remaining to complete its various capital projects. The bond proceeds held for these projects are escrowed at Wells Fargo. As projects are completed or as progress billings are received, the Academy submits the appropriate supporting documentation to Wells Fargo, who in turn provides a reimbursement to the school for the funds expended. The Academy expects to spend the full $6,000,000 within the three-year period allowed under the terms of the bond agreement. 18375 Discounted tuition Tuition remission Carol Watson Head of School spouse 65676 2012 Form W-2 Wages (Box 5) 0 X 7 3919565 Selling price 0 1 1 Method for Determining Number of Contributions: Part I, Column (b): The Academy reports the number of individual contributors in Part I Column B of this schedule. Third Party Use: Part I, Line 32b: The Academy uses the donated services of Banc of America/Merrill Lynch to liquidate the non-cash contributions. Such liquidation usually is undertaken within days of receipt of the contribution. Organization Mission Statement Form 990, Part I, Line 1 Mission Statement The Academy was the fortunate recipient of a transformational gift of land in the early sixties, and fittingly, has chosen to use this gift to ensure economic accessibility to students living throughout the city of Albuquerque and the region. Today the Academy offers students an education that is without equal in the Southwest. Students from approximately 90 area schools share an insatiable curiosity and are served by teachers who deliver their expertise in creative and engaging ways. Students in the 6/7 division follow a non-traditional schedule that allows for teaching flexibility and adaptability in an ever-changing world. Students in the 8/9 division are given their own campus space and their own accountability to help them grow into confident young adults. For the 10/12 division, course work involves increasingly philospohical and analytical thought. Academy students serve the community to which they belong, compete in a variety of competitive sports and participate in a variety of academic clubs and student organizations. Most Academy students attend four-year colleges and universities upon graduation, many of them enrolling at some of the best universities in the country. Admission to the Academy is competitive; approximately one-half of those who apply are offered admission. For the 2012/13 school year, the student body consisted of 48% boys and 52% girls, 49% are students of color, and 29% received approximately $4.9 million in financial aid. Financial aid is based on demonstrated financial need; only after students are admitted and their needs are assessed is financial aid offered. Organization Mission Statement Form 990, Part III, Line 1 Description of Organizations Mission We believe that children's lives change when their natural passion for learning is nurtured and transformed into habits of life-long learning and reflection. We believe that the world changes as these children learn to serve country and community with wisdom, conviction, and compassion. In light of these beliefs: We serve students of talent and character, offering them an education that broadens their perspective, sharpens their minds, strengthens their bodies, and engages their hearts. We commit to creating a caring, inclusive, and just community, using the geography and culture of our home in the Southwest to enrich our educational programs and to foster creativity, personal balance and a connection to the natural world. We devote our resources to ensure economic accessibility to our students and to support the wider community through outreach and community service. We entrust this mission to our graduates and successors as we preserve our resources and serve the children of generations to come. Program Service Statement Form 990, Part III, Statement of Program Service Accomplishments The Academy opened its doors in the fall of 1955 with 12 boys in grades 7 through 9, two teachers, and founding Head William Wilburn. Classes were held in rented space in the Parish Hall of St. Michael's and All Angels Church. In 1957, enrollment had grown to 75 boys and the school moved to a 27-acre site on north Edith Boulevard in Albuquerque, NM. The first class of seven boys graduated in 1960. In 1966, the school moved to its present location, and in 1967/68 was home to 405 boys. Girls were admitted in grades 9-12 in 1973. For the school year 2012/13, the Academy served 1,132 girls and boys in grades 6 through 12. The Academy's remarkable growth was made possible largely through the transformational gift of Albert G. Simms, a New Mexico financier and rancher, and his wife, Ruth Hanna McCormick Simms. In the early 1960's the Simms gave or bequeathed to the Academy (in trust) more than 12,000 acres of undeveloped land and 8,000 shares of Albuquerque National Bank (now Bank of America) stock. The undeveloped land has been sold resulting in the endowment that today enables education in a beautiful and uplifting environment, and also has provided the school its campus. The uniqueness of the Academy is due, in large part, to its commitment to a needs-blind admission policy, providing accessibility to qualified students from throughout the greater Albuquerque community. Only after students have been chosen are their tuition needs assessed and financial aid offered. Every Academy student benefits from the school's commitment to accessibility and affordability. Direct support from the endowment covers approximately 25% of the cost not covered by tuition. A further commitment of the Academy is to diversity and dedicating the school's resources to creating an environment in which all students can thrive. It is the responsibility of all the school's constituents to make this environment conducive to learning and to foster mutual respect for one another. Students of color (including students of Middle Eastern, Hispanic, African American, Asian, and Native American ancestry) represented approximately 49% of the total student population for the 2012/13 school year. Appreciation for diversity is also extended to those of various socioeconomic levels. The Academy has chosen to voluntarily particpate in the USDA's National School Lunch Program which provides nutritionally balanced, low-cost or free breakfast and lunch to students each school day. Academy students benefit academically from small classes (averaging 16 students in the 6/7 division to 15 in the 10/12 division) and a teacher-to-student ratio of 1:9. 294 students took an advanced placement exam in May 2013. Of these students 67% received scores of 4 or 5, and 93% received a score of 3 or above. The 2013 graduating class had 33 National Merit Scholarship semifinalists, 27 commended students and 19 National Hispanic Scholars. Almost all Academy graduates enroll in a four-year college or university immediately upon graduation. Program Service Statement Form 990, Part III, Statement of Program Service Accomplishments The Academy summer session, offered the opportunity to 1,901 children of the greater Albuquerque community (most non-affiliated with the regular school year) to participate in an enriching and exciting summer experience, during the fiscal year ended June 30, 2013. The Academy is equally pleased to offer this program to students visiting Albuquerque and New Mexico each summer. The program had 239 class offerings and includes early childhood programs, a day camp, various sports camps and swim instruction for children from preschool to high school. Credit classes in math and science are also offered to high school students. An integral part of the session is the Multicultural Summer Honors Program, a summer scholarship program for academically talented and motivated African American, Native American, Hispanic, and other students who will be entering the fourth and fifth grades. The summer program has been an integral part of the Academy since 1984, reinforcing the school's unique mission of accessibility, affordability, excellence and outreach. The program also builds a broader sense of community, as summer students and their siblings, as well as children of faculty and alumni return summer after summer. The session is staffed by qualified and talented individuals who come from throughout New Mexico and the wider national and international educational community. The teacher/student ratio's for the summer session offered for the fiscal year ended June 30, 2013 was 1:5 for the day camp, 1:8 for the children's workshop, 1:12 for pre-grade 1, 1:12 for pre-grade 2-3, and 1:15 for all other programs offered. Program Service Statement Form 990, Part III, Statement of Program Service Accomplishments The food service department serves the Academy community by providing nutritious meals, prepared with care, presented in an attractive manner, and served in a friendly atmosphere by a courteous staff within budgetary guidelines and in an environmentally sustainable way. The Academy dining halls provide breakfast and lunch every school day for students, faculty, and staff. Lunch is included in the price of tuition and students are required to attend lunch as part of the regular school day. Students may self-select from hot or cold sandwiches, a salad bar, pasta and pizza, home-style items, southwestern and asian fare, soup, and milk/juice choices. In grades 6-9, nine to ten students and one faculty member eat at each table. Lunch tables are assigned and change on a regulary scheduled basis. In grades 10-12, students have open seating and may eat anytime during this division's open lunch period. The Academy participates in the USDA school breakfast and national school lunch programs and follows the nutrient guidelines specified for these meals for students in grades 6-12. Calories, carbohydrates, protein, vitamins A and C, iron, calcium, cholesterol, and sodium are evaluated during menu planning and meet the USDA requirement when averaged over a week. Total fat is planned to be 30% or less and saturated fat 10% or less. Explanation for Not Filing Form 720 Form 990, Part V, Line 14b The Academy received no payments for indoor tanning services during the tax year. Form 990, Part VI, Section B, line 11 Form 990 is prepared by the Academy's Controller with a review by the Academy's Business Manager and by its external accounting firm. The Board of Trustee's Audit & Risk Committee members with Academy employees (Head of School, Treasurer, Business Manager and Director of Finance) review the form in detail. Trustee members utilize this time to ask questions, clarify data and make suggestions for any changes. Any agreed upon changes are incorporated into the form, with a final review undertaken by the Controller and the Business Manager. The Form is submitted electronically to the Internal Revenue Service ("IRS") in a timely manner. The trustees receive the Form 990. The Academy values those few donors who request that they remain anonymous to the community. To that end, to protect such donors and keep the school's promise that their identity will not be widely known, Schedule B of Form 990 is not provided to all Trustees of the school. All other portions of the Form 990 are provided to all Trustees. To be sure the board is aware of gifts and to protect the organization from the potential of inappropriate gifts to the school, the Board Chair, the Head of School, the Treasurer and the Director of Institutional Advancement are completely aware of the identity of all donors. Should any one of them determine that a donation might be inappropriate or pose a conflict with the organization, they are charged with raising the issue with the full board. The Academy publishes a comprehensive giving report on an annual basis that is available to the public. Form 990, Part VI, Section B, line 12c The conflict of interest statement is directed to the trustees, the officers, to those who make purchasing decisions, to all persons who are described as management personnel and to anyone who has proprietary information concerning the Academy. Each employee must sign a statement annually which affirms such person has received a copy of the conflict of interest policy, has read and understands the policy and has agreed to comply with the policy. This is to ensure the Academy operates in a manner consistent with charitable purposes and does not engage in activities that could jeopardize its tax-exempt status. Periodic review shall, at a minimum, include whether transactions between employees and the school are negotiated as the result of "arm's length bargaining" and whether partnerships, joint ventures and any other business arrangements with the school are properly recorded. Transactions are further reviewed to ensure they reflect reasonable investment or payment for goods and services, they further charitable purposes and they do not result in inurement, impermissible private benefit or any excess benefit transaction. Accounting and other personnel are encouraged to report a situation involving a potential conflict of interest to an appropriate school official. Form 990, Part VI, Section B, line 15 The Board of Trustee's executive committee takes responsibility for the evaluation of its two direct reports, the Head of School and the Treasurer, and for the determination of compensation for each of those individuals. The executive committee consists of the Board Chair, Vice Chair, Secretary, Assistant Secretary, Assistant Treasurer, and two at-large board members appointed by the Chair. All board members, including the members of the executive committee, submit a conflict of interest disclosure statement to the Chair of the board annually. These are utilized to determine that the committee members do not have any undisclosed conflicts of interest and they do not have any direct financial interest in the compensation provided to the Head of School or the Treasurer. In addition, at the time the executive committee considers compensation questions, each committee member is asked again to confirm that they do not have any conflicts of interest. The executive committee has, in some years, retained a compensation consultant intimately familiar with compensation for the heads of independent school's both in the region and nationally. The consultant has no financial or other interest in the compensation decisions made. The consultant has prepared a study of up to thirty or forty schools that are or may be comparable to the Academy in terms of complexity, size of operating budget, grade range and student body size. The consultant also considers heads of school with experience levels comparable to the Academy's Head of School. The consultant's compensation information includes evidence of salary, bonuses, benefits and other non-cash consideration that other heads of school may receive. The executive committee considers the information assembled by the consultant, and in addition, information gathered from Form 990's of other independent schools, news sources and independent school associations, in setting compensation for the Head of School, together with any information obtained from any evaluations that may have been peformed, ordinarily in the spring and early summer, in advance of the beginning of the Academy's fiscal year. The executive committee maintains minutes of its meetings, including those in which compensation matters are considered. The Chair of the board reports the compensation decisions to the full board. The most recent compensation consultant study was completed during the 2009/10 fiscal year. The compensation consultant provided a letter to the Academy's executive committee confirming his judgment that the Head of School's compensation was reasonable and appropriate. As noted, this information is supplemented by more recent information. Determining comparability of the Treasurer's compensation is more difficult because of the paucity of information available. The Treasurer's position at the Academy involves a fairly unique set of responsibilities in independent schools, ranging from management of a substantial endowment to a wide range of debt management, business and financial matters. One of the reports done by the compensation consultant did include information regarding the Treasurer's compensation by comparability to the second highest paid officer of the subject schools. That information, coupled with information from a survey by an Association of School Business Officers, certain Form 990 information, and the knowledge of the members of the executive committee of compensation levels prevailing in the geographic area for persons with the skill set and work ethic necessary to fill this office have been used to set compensation since that study. The executive committee continues to look for additional means of doing comparisons of compensation. Prospectively, the executive committee hopes to be able to use additional resources for making compensation decisions. The newly enhanced Form 990's from comparable schools, will allow the Academy to proceed during most years, by considering those (perhaps with a limited accounting firm confirmation of the information) together with information available from independent schools and business associations each year, and adding in a consultant's study and report on a regular basis. Form 990, Part VI, Section C, line 19 The Academy keeps a database (updated annually) of financial institutions, bondholders and vendors who have requested a copy of the Academy's audited financial statements as a condition of providing credit and services to the school. After the audit is completed and accepted by the Board of Trustees, electronic copies of the statements are distributed to all entities in the database. The Academy does not currently make its governing documents or conflict of interest policy statements available to the public. Form 990, Part XII, Financial Statements and Reporting, 2c The Academy did not change its oversight process or selection process during the tax year being reported on. Albuquerque Academy Educational Foundation 6400 Wyoming Blvd NE Albuquerque NM 87109 850381395 Support New Mexico ISAS schools NM 501(c)(3) Line 11b, II 0 Albuquerque Academy Student Support Foundation 6400 Wyoming Blvd NE Albuquerque NM 87109 205895188 Provide support to Albuquerque Academy NM 501(c)(3) Line 11b, II 0 Albuquerque Academy for Boys Trust #1 1300 Merrill Lynch Drive 3rd Pennington NJ 08534 866008015 Provide support to Albuquerque Academy NM 501(c)(3) Line 11c, III-FI 0 Albuquerque Academy for Boys Trust #2 1300 Merrill Lynch Drive 3rd Pennington NJ 08534 856014105 Provide support to Albuquerque Academy NM 501(c)(3) Line 11c, III-FI 0 High Desert Investment Corporation PO Box 92933 Albuquerque NM 87199 850394108 Real estate development NM Albuquerque Academy C -33635547 1.00000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 High Desert Investment Corporation R 108650 Cash Form 990 - Schedule R - Part IV - Line 1 In 1991, the Academy's Board of Trustees formed High Desert Investment Corporation ("High Desert"), a for-profit entity, for the intial purpose of acquiring and developing property owned by the Academy in the foothills of the Sandia Mountains in Albuquerque. High Desert eventually included the following wholly owned subsidiaries: Tiburon Investment LLC, Mariposa East Commons LLC, and Mariposa Community Center LLC. In 2003, High Desert purchased approximately 1,400 acres of land from the Academy, which was located in Rio Rancho, New Mexico and undertook development activity of that real estate. High Desert suffered losses connected with the country's residential housing collapse beginning in 2007 from which it has not recovered. No development activity took place in fiscal years ended June 30, 2013 or 2012, nor did High Desert sell any land in those years. The Academy's equity method investment in High Desert was evaluated for impairment at June 30, 2012, and determined it to be fully impaired. No additional impairment of High Desert was recorded ,therefore, by the Academy for the fiscal year ended June 30, 2013.